Hello,

I want to discuss why stocks are easier to trade than forex or other derivates. Please spare me with pseudo-forex-advantages like 24h market (no one trades 24 hours; beside that the market is volatile only in certain times), smaller trading universe (actually I prefer a lot of charts...), bigger market (who cares?), smaller fees (every looked at the commissions of IB?) and liquidity (look at apple, google and co. here you have more liquidity you can dream off...).

I claim that stock markets are easier to trade for following reasons:
1. The market has a general upwards drift. You could buy-hold and eventually will turn a profit. Not so in forex or other derivates (e.g. see indices worldwide over the past 50 years - that's not a coincidence) - Anyone knows why???
2. It's not a zero-sum game in the sense that someone has to loose, whenever I turn a profit. Naturally this means that there's less competition. It's a universal truth, that less competition means more profit potential. The consequence: There's a higher possibility for the constitution of a situation where everyone has the same interest, making it easier to trade the market.
3. Being a smaller entity a company is much easier to analyze compared to an entire country. What's even more important is that people find a consensus much easier about the fundamental strength of a company (which affects the stock price). For example, take the EUR/USD. Good news from the EU and good news from the states. It's in the trader's perception which news is better, ultimately influencing the price. However, good news (or outlook, if longterm) for companies can be interpretet only in one way. Right, good for company; ... which equals good for the stock (in the long term).

I think what it comes down to, is that in stock markets there's a stronger consensus about what's good for a company and what's bad for a company (a company is easier to analyze in a whole, there're more information and so on...). This makes stocks more predictable in comparison to commodities, forex or futures... (being a non zero-sum game there isn't a conflict in interest as well; thus everyone can profit). This is the reason, why stock markets are easier to trade. If you disagree or feel to comment I encourage you to do so.